PUBLISHED MON, MAR 29 202110:17 AM EDTUPDATED MON, MAR 29 202110:21 AM EDT
Amazon CEO Jeff Bezos, founder of space venture Blue Origin and owner of The Washington Post, participates in an event hosted by the Air Force Association September 19, 2018 in National Harbor, Maryland.
Amazon CEO Jeff Bezos
Alex Wong | Getty Images

JPMorgan just named Amazon a top pick for 2021, expecting the e-commerce giant to rally nearly 45% in the next year.

The Wall Street firm — which has an overweight rating on Amazon — expects the company’s share price to rise to $4,400 per share in the next 12 months.

Based on the retailer’s share price of about $3,052 as of Friday’s close, JPMorgan expects the stock will rise nearly 45%. Shares ticked down on Monday morning, with Amazon trading around $3,036 at 10:17 a.m. ET.

“We believe Amazon is well positioned as the market leader in e-commerce and public cloud, where the secular shifts remain early—U.S. e-commerce represents ~20% of adjusted retail sales, and we estimate ~15% of workloads are in the cloud today,” JPMorgan internet analyst Doug Anmuth told clients.

 

Shares of Amazon are up 60% in the past year as the e-commerce company emerged as a major beneficiary of the Covid-19 pandemic. The company had a blowout fourth quarter of 2020, in which earnings per share came in at $14.09, while analysts expected $7.23 per share.

Amazon’s cloud-computing unit saw its revenue climb 28% to $12.7 billion from $9.95 billion a year earlier.

“We believe Amazon’s flexibility in pushing first-party vs. third-party inventory and its Prime offering both serve as major advantages in its retail business, and its multi-year head start in the cloud has led to a 40%+ AWS global market share,” said Anmuth, referring to Amazon Web Services, the company’s cloud-computing platform provider.

“Amazon is also showing increased profitability, with its high-growth AWS and Advertising revenue streams also its most profitable,” he added.

Anmuth is a top-rated technology investor, with an average return of 26.4% per rating, according to TipRanks.

Anmuth also named Google-parent Alphabet, Peloton, Facebook, Twitter and Lyft as top picks.